DA Davidson Predicts Reduced Earnings for Advance Auto Parts

Advance Auto Parts, Inc. (NYSE:AAP) – Investment analysts at DA Davidson dropped their FY2025 earnings per share (EPS) estimates for shares of Advance Auto Parts in a report issued on Tuesday, September 9th. DA Davidson analyst M. Baker now expects that the company will earn $1.53 per share for the year, down from their previous forecast of $1.96. DA Davidson currently has a “Neutral” rating and a $63.00 target price on the stock. The consensus estimate for Advance Auto Parts’ current full-year earnings is ($0.46) per share. DA Davidson also issued estimates for Advance Auto Parts’ FY2026 earnings at $2.87 EPS.

Advance Auto Parts (NYSE:AAP) last released its earnings results on Thursday, August 14th. The company reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.59 by $0.10. The company had revenue of $2.01 billion for the quarter, compared to analysts’ expectations of $1.97 billion. Advance Auto Parts had a negative net margin of 4.37% and a negative return on equity of 1.97%. Advance Auto Parts’s revenue for the quarter was down 7.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.75 EPS. Advance Auto Parts has set its FY 2025 guidance at 1.200-2.20 EPS.

Several other equities analysts also recently commented on the stock. Bank of America upped their price target on shares of Advance Auto Parts from $33.00 to $39.00 and gave the company an “underperform” rating in a report on Friday, May 23rd. Wells Fargo & Company upped their price target on shares of Advance Auto Parts from $45.00 to $50.00 and gave the company an “equal weight” rating in a report on Friday, August 15th. Roth Capital set a $50.00 price objective on shares of Advance Auto Parts and gave the company a “neutral” rating in a research report on Wednesday, May 28th. UBS Group set a $65.00 price objective on shares of Advance Auto Parts and gave the company a “neutral” rating in a research report on Tuesday, August 12th. Finally, BMO Capital Markets reissued a “market perform” rating and issued a $50.00 price objective (up from $40.00) on shares of Advance Auto Parts in a research report on Friday, May 23rd. One equities research analyst has rated the stock with a Buy rating, eighteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $51.78.

Advance Auto Parts Stock Performance

Shares of NYSE:AAP opened at $62.11 on Thursday. The company has a market capitalization of $3.73 billion, a price-to-earnings ratio of -9.75 and a beta of 1.06. Advance Auto Parts has a 12 month low of $28.89 and a 12 month high of $70.00. The firm’s 50-day moving average is $58.98 and its 200 day moving average is $46.30. The company has a current ratio of 1.27, a quick ratio of 0.49 and a debt-to-equity ratio of 0.68.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Pzena Investment Management LLC increased its stake in shares of Advance Auto Parts by 31.8% in the first quarter. Pzena Investment Management LLC now owns 4,312,508 shares of the company’s stock worth $169,093,000 after acquiring an additional 1,041,611 shares during the period. Federated Hermes Inc. increased its stake in shares of Advance Auto Parts by 75.7% in the second quarter. Federated Hermes Inc. now owns 2,387,325 shares of the company’s stock worth $110,987,000 after acquiring an additional 1,028,561 shares during the period. Geode Capital Management LLC increased its stake in shares of Advance Auto Parts by 48.4% in the second quarter. Geode Capital Management LLC now owns 1,416,636 shares of the company’s stock worth $65,867,000 after acquiring an additional 461,761 shares during the period. Invenomic Capital Management LP increased its stake in shares of Advance Auto Parts by 281.2% in the first quarter. Invenomic Capital Management LP now owns 600,895 shares of the company’s stock worth $23,561,000 after acquiring an additional 443,251 shares during the period. Finally, Jump Financial LLC acquired a new stake in shares of Advance Auto Parts in the first quarter worth $15,882,000. Institutional investors and hedge funds own 88.70% of the company’s stock.

Insider Buying and Selling

In related news, SVP Jason Hand sold 948 shares of the stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $48.52, for a total transaction of $45,996.96. Following the completion of the sale, the senior vice president owned 9,876 shares of the company’s stock, valued at $479,183.52. This represents a 8.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.35% of the stock is owned by insiders.

Advance Auto Parts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 24th. Investors of record on Friday, October 10th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Friday, October 10th. This represents a $1.00 dividend on an annualized basis and a yield of 1.6%. Advance Auto Parts’s dividend payout ratio is presently -15.70%.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories; belts and hoses; brakes and brake pads; chassis and climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wires; radiators and cooling parts; starters and alternators; and steering and alignment parts.